The impact of cell phone towers on house prices: evidence from Brisbane, Australia

Darshana Rajapaksa (), Wasantha Athukorala (), Shunsuke Managi, Prasad Neelawala, Boon Lee, Viet-Ngu Hoang and Clevo Wilson ()
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Darshana Rajapaksa: Queensland University of Technology
Prasad Neelawala: Business Management and Marketing

Environmental Economics and Policy Studies, 2018, vol. 20, issue 1, No 10, 224 pages

Abstract: Abstract The growing public pressure against the spread of cell phone towers in urban areas has created a need to understand their impact on adjacent house prices. A few existing studies are, however, controversial in their methodology and inconclusive in their results. Therefore, our study on the effect of cell phone towers on house prices is designed to avoid these deficiencies. Property transaction data collected from two suburbs within the Brisbane City Council were analysed adopting the spatial hedonic property valuation model. The estimated models were statistically significant and were largely in line with theoretical expectations. The results revealed that proximity to cell phone towers negatively affects house values, decreasing as the distance from the tower increases. A suitable compensation programme for nearby property owners is, therefore, suggested as being an appropriate policy response.

Keywords: Cell phone towers; Externalities; Hedonic property valuation; Spatial analysis (search for similar items in EconPapers)
JEL-codes: Q51 R23 R31 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10018-017-0190-9

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